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U.K. Government in Chaos as Race for Next PM Begins; Russia Moves Ahead with Mass Evacuations from Kherson; Iranians Risking Their Lives for Anti-Government Protests; Iceberg Lettuce Outlasts U.K. Prime Minister in Tabloid Contest; Source: Trump Weighs Another FBI Search of Mar-a-Lago. Aired 12-12:45a ET
Aired October 21, 2022 - 00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN VAUSE, CNN INTERNATIONAL ANCHOR: Live around the world, this is CNN NEWSROOM.
[00:00:53]
Coming up, she is a quarter, not a fighter. Will Liz Truss is stepping down as prime minister will bring an end to the turmoil and chaos within Britain's Conservative Party.
CNN reporting images from Iran the misogynistic leadership tried to hide the brutal cruelty and viciousness of their crackdown on protesters.
And after a series of legal setbacks for former U.S. president, Donald Trump, his legal team is considering a new approach. It's called cooperation.
ANNOUNCER: Live from CNN Center, this is CNN NEWSROOM with John Vause.
VAUSE: Less than 24 hours after Liz Truss finally declared in front of Parliament that she was a fighter, not a quitter. Well, she quit.
After six weeks of unprecedented political chaos at Westminster, her resignation has sparked more turmoil within the conservative government, with intense speculation now over who will be the third leader of the Conservative Party in just four months.
Sources tell CNN former Prime Minister Boris Johnson is considering a run. Other possibilities include former finance minister Rishi Sunak, defense minister Ben Wallace, and newly-resigned home secretary, Suella Braverman.
Truss announced her resignation outside No. 10. It seems she never recovered politically after her economic plan for growth sent the pound plunging and financial markets into a panic.
(BEGIN VIDEO CLIP)
LIZ TRUSS, OUTGOING BRITISH PRIME MINISTER: And we set out a vision for a low-tax, high-growth economy that would take advantage of the freedoms of Brexit. I recognize, though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party. I have therefore spoken to His Majesty, the king, to notify him that I am resigning as leader of the Conservative Party.
(END VIDEO CLIP)
VAUSE: Truss will stay on as prime minister in a caretaker role until her successor is named. That will be at the end of next week by the latest.
Candidates will need at least 100 nominations from conservative MPs. If there was only one candidate, there could be a new party leader by Monday.
Truss officially became prime minister six weeks ago when she was invited by Queen Elizabeth to form a government. Two days later, her majesty died.
Truss is now officially the shortest serving prime minister in British history, with the leader of the main opposition party and the Scottish first minister both demanding a general election.
(BEGIN VIDEO CLIP)
KEIR STARMER, BRITISH LABOUR PARTY LEADER: What a mess. And this is not just the soap opera at the top of the Tory Party. It's doing huge damage to our economy and to the reputation of our country.
The public are paying with high prices, with higher mortgages. So, we can't have a revolving door of chaos. We can't have another experiment at the top of the Tory Party. That is an alternative, and that's a stable Labour government. And the public are entitled to have their say.
(END VIDEO CLIP)
VAUSE: In many ways, Truss was a true heir to the legacy of former prime minister Boris Johnson, who was forced from office over seemingly never-ending scandals and controversies, as well.
But unlike Johnson, Truss was not elected by popular vote; came to power with no mandate, and many predicted her time at No. 10 would be brief.
We begin our coverage now with CNN's Max Foster.
(BEGIN VIDEOTAPE)
MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT (voice-over): Liz Truss resigned after just 45 days as Britain's prime minister, the shortest tenure in history, in which markets are tanked, boarding costs have soared, and poll numbers slumped for governing party in utter disarray.
TRUSS: I want to be honest. This is difficult.
FOSTER (voice-over): Truss was made leader following Boris Johnson's departure, chosen by less than a tenth of 1 percent of the U.K. electorate. A slither of the Conservative Party base, more right-wing, older and whiter than the average voter.
TRUSS: I have a bold plan to grow the economy through tax cuts and reform.
FOSTER (voice-over): Any prospect of the honeymoon period was short- lived. Queen Elizabeth died on Truss's second day in office, alongside former finance minister Kwasi Kwarteng, Truss championed right-wing economic policy announcing tax cuts for the rich and a low cap on bankers' bonuses.
[00:05:10]
Perceived unfairness fueling public fury, as the U.K. began grappling with a cost of living crisis. The pound plummeted against the dollar, and the Bank of England was forced to step in to shore up market confidence.
Thirty-eight days into office, Truss sacked Kwarteng. Without her friend and ideological ally, the prime minister appeared defeated, labeled a lame duck, unable to unite her party, let alone the country.
Former health secretary Jeremy Hunt came in as the new chancellor.
JEREMY HUNT, BRITISH FINANCE MINISTER: Firstly, we will reverse almost all the tax measures announced in the growth plan three weeks ago.
FOSTER (voice-over): Truss had already U-turned on cutting the top- rated tax and cutting corporation tax. Her credibility was now in tatters.
STARMER: Two-year energy freeze, gone.
Tax-free shopping, gone.
Economic credibility, gone.
TRUSS: Now, I recognize we have made mistakes. I'm sorry for those mistakes.
LORD ROBERT HAYWARD, CONSERVATIVE PEER AND POLLING GURU: Probably one of the biggest errors that Liz Truss made was at the point she became prime minister. The only people she appointed were her supporters. It was a cabinet of extreme loyalists.
TRUSS: To get the united --
FOSTER (voice-over): Truss's premiership was brief and chaotic. The former anti-monarchist turns true-blue Tory, a remainer to Brexiteer. Her spell as prime minister plagued by inconsistency and instability. A victim and architect of deep political misfortune.
TRUSS: I am resigning as leader of the Conservative Party.
FOSTER (voice-over): Max Foster, CNN, Westminster, London. (END VIDEOTAPE)
VAUSE: Right to Los Angeles now and CNN's European affairs commentator Dominic Thomas. Welcome back.
DOMINIC THOMAS, CNN EUROPEAN AFFAIRS COMMENTATOR: Thank you, John.
VAUSE: OK, so the last six -- six weeks, rather, seems like a blur of controversy, backtracking, apologies. It was over in just sort of a blink of the eye at the same time.
And the "I" headline notes, "Gone in 44 days."
But, in her wake, after just such a short period of time, there was this trail of destruction. Whoever ends up leading the Tory Party, meaning the third leader in four months, can inherit a struggling economy made worse by Truss-onomics, bitterly divided party, with a serious legitimacy crisis.
And because this will all be done by party room vote, the next leader will have no popular mandate, no political capital. So, what are the chances that the political turmoil will continue and possibly get even worse?
THOMAS: Yes, well, as the situation stands right now, if the general election was called any time soon, the Conservative Party would not only lose but likely be decimated.
And, so what they're doing right now is exercising their prerogative to pick a new leader. And I think that most likely, that leadership appointment will come with an announcement of a general election at some time in the future.
But we don't know exactly when that will be, which will give them time to try and rebuild mitigate, some of the damage I think that's being done, and also go on the attack here on the Labour Party and their proposed policy.
But I think you're absolutely right that what we are not -- what we are underestimating here is how the approximately 50 million registered voters will respond to this and whether or not there will be a call for a general election that will -- that will escalate and force them to make that kind of decision.
And, I think even more importantly, whether this new government will be able to study the ship which looks increasingly unlikely, which will therefore cause even greater problems for the British people and turn them even further against the Conservative Party -- John.
VAUSE: Yes, this whole process of deciding the new leader, the next prime minister, it's come under a lot of criticism like this from London's mayor, Sadiq Khan, speaking to CNN. Here he is.
(BEGIN VIDEO CLIP)
SADIQ KHAN, MAYOR OF LONDON: Well, what we don't want is yet another internal conservative leadership contest with another conservative leader becoming the U.K. prime minister, more continuity, austerity, policies.
What we need is for Liz Truss or whoever Conservative members choose to be the next leader to give the British public the opportunity of voting for a fresh start.
(END VIDEO CLIP) VAUSE: Echoing that is the "Independent" headline: "Voters Demand General Election to Pick New Prime Minister." But that is extremely unlikely. And, it would be extremely unlikely if Khan's Labour Party was in power, and in a similar position.
So explain how this system works. And can it be changed?
THOMAS: So, there have been discussions about obviously changing former parliamentary democracy towards proportional representation, towards other systems. But, none of them have really got any traction.
It's clear, right now, that this sort of repeated opportunity that a party has to appoint a leader without going to a general election is -- is problematic.
[00:10:03]
But ultimately, those are the rules. Now, there have been -- of course, parties elect their leaders. They go to a general election, and with the general election victory up the majority that leader becomes the prime minister.
What Khan is upset about here, and I think rightly so, is that this will be the second time that conducted one of those internal leadership elections without going to the general public.
Now, previous reforms have been to limit the capacity of the government to go to general elections once they felt the pulse of the people. So, you saw Margaret Thatcher and Tony Blair, for example, after four-year periods or five-year periods that those measures known as the fixed term parliamentary act were ultimately repealed in 2019.
And, we've gone back to the old system now that allows the party and with the majority to hold on in this way and to wait for that five- year period in this particular case to unfold.
So, what the Conservative Party is doing are within the rules, but as Khan is pointing out, it is gradually eroding people's trust in the democratic process. And, when things have gone so far South in this way, the British people now want a chance to weigh in and change the leadership, John.
VAUSE: Yes, what seems incredible is that the leadership race, their could be a possible comeback by Boris Johnson, who was prime minister, what, just 45 days ago?
"The Daily Mail," "Boris versus Rishi: The Fight for the Soul of the Tories," Rishi being Rishi Sunak, who lost out on the leadership to Truss.
Over at "The Daily Telegraph," "Boris Johnson Tells Tories: I Can Save Party from Election Wipeout."
So, apart from "The Daily Star's" lettuce, which lasted longer than Truss, because there is no obvious heir apparent, does that open the way for Captain Chaos, a.k.a., Boris Johnson to make his comeback?
THOMAS: It does, and let's not forget that, for Johnson, this would be fulfilling the dream of emulating his ultimate political hero, which is Winston Churchill, who, of course, was the prime minister during the Second World War and came back in 1951. So there's always been a sort of discussion about that.
What's so absolutely extraordinary, and you're right, that the divisions within the party go all the way back to David Cameron and the Brexit debate. And since then, and all the different divisions in camps that are polarized this particular party.
What is remarkable is just a few weeks ago, approximately 60 members of Boris Johnson's government resigned. And the question is why. Appalling behavior scandals, rules violations and so on. Terrible performance in byelections and, ultimately, a majority that he -- that he squandered and did damage to the -- to the party.
So, it would be absolutely remarkable, but given the state of the party today, nothing is really that impossible. But, having said that, I think that that era of the -- sort of the Brexit wave that he rode and that sort of populist appeal and has gone away.
And the British people are now looking for real concrete solutions to everyday problems. And, no matter who they appoint, unless they're able to come for people very quickly, it's an inevitable scenario, and that will play out and very possibly with him at the helm -- John.
VAUSE: It seems the case of choosing the least worst option for the Tories right now.
Dominic, thanks for being with us. We appreciate it.
THOMAS: Thank you.
VAUSE: U.S. President Joe Biden issued a statement on Liz Truss's resignation on Thursday saying, quote, "The United States and the U.K. are strong allies and enduring friends. And that fact will never change."
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: Look, she was a good partner on Russia and on Ukraine.
(END VIDEO CLIP)
VAUSE: French President Emmanuel Macron spoke about the political upheaval in the U.K. while attending an E.U. summit in Brussels. Here he is.
(BEGIN VIDEO CLIP)
EMMANUEL MACRON, FRENCH PRESIDENT (through translator): France, as a nation and as a people of the British people, wishes above all for stability in the context that we know, which is the context of war, of energy tensions and bigger crisis. It is important that the U.K. quickly regains political stability. This is all I want.
(END VIDEO CLIP)
VAUSE: And the former prime minister's short term in office has not been without its critics or without its jokes. Former Russian President Dmitry Medvedev posted on Twitter, "Bye, bye congrats to lettuce."
That rather barb referring barb referring back to a web cam set up by the tabloid newspaper "The Daily Star," asking the question, Will Liz Starr -- will Liz Truss outlast this lettuce? We now have the answer.
Well, the always image-conscious Vladimir Putin pays a visit to the troops. It shows his skills as a sniper. But this visit was about a lot more than that. We'll explain in a moment.
Plus, why some protesters in Iran are risking their lives to demand freedoms they've never known amid a government crackdown, far more brutal than the images we've seen would suggest.
(COMMERCIAL BREAK)
[06:17:02]
VAUSE: A Russian military convoy was an easy target for Ukrainian missiles. This video, posted on social media by Ukraine on Thursday, says the missile strike was in the Luhansk region.
The footage also shows secondary explosions, suggesting the Russian vehicles were carrying ammunition.
(UNINTELLIGIBLE) Kyiv says it's increasing concerned Moscow may try to open a new front from Belarus to cut a supply route for Western weapons into Ukraine.
Meanwhile, Ukraine is asking allies for help with its power infrastructure. Russian airstrikes have damaged or destroyed up to 40 percent of the national power grid in the past few weeks.
On Thursday, President Zelenskyy told the European Council those attacks are not only aimed at Ukraine but also at Europe.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, PRESIDENT OF UKRAINE (through translator): Russia is also provoking a new wave of migration of Ukrainians to E.U. countries. Russian terror against our energy facilities is aimed at creating as many electricity and heat problems as possible for Ukraine this fall and winter. And, for as many Ukrainians as possible, to go to your countries.
(END VIDEO CLIP)
VAUSE: The White House and the Pentagon now say that Iranian military personnel have been in Crimea, assisting Russia and drone operations in Ukraine.
Washington had accused Iran of supplying Russia with military drones like these, which Tehran has denied. But U.S. officials have not said, on the record, that Iranians are helping the Russians. Actually, in country.
In Southern Ukraine, a third Russian official is accusing Ukraine of targeting a river crossing in the city of Kherson. He claims two people were killed in Thursday's missile strike. Ten others were hurt.
There's no response from Ukraine, at least not yet. But that's happening as Russia conducts a mass evacuation of civilians from that city. And CNN's Fred Pleitgen has details.
(BEGIN VIDEOTAPE)
FREDERIK PLEITGEN, CNN INTERNATIONAL CORRESPONDENT (voice-over): As Ukrainian forces press their counteroffensive in the country's South, Russia is resorting to what appeared to be increasingly desperate measures in the areas they control in the Kherson region.
Thousands of people waiting to be evacuated by boat. The puppet authorities installed by Moscow claiming they've already taken some 15,000 out of Kherson city.
"Why did you decide to evacuate?" the reporter asks.
"I have a small child to take care of, you see," the woman answers.
Russia says it's bearing these people to safety. The Ukrainians say these are little more than deportations. Russia has imposed martial law in this and other areas of Ukraine controlled by its forces.
The Russians say they are increasingly the intensity of their mobilization effort. Russian President Vladimir Putin visiting soldiers outside Moscow and himself even firing a sniper rifle.
And Putin's continued aerial assault on Ukraine's energy infrastructure is starting to take a toll. Ukraine's authorities announcing the need for partial blackouts in most of the country as intense strikes on power plants continue using cheap kamikaze drones, which Kyiv says Iran has provided to the Russian army.
The spokeswoman for Russia's foreign ministry rejecting the allegations.
[00:20:04]
MARIA ZAKHAROVA, SPOKESPERSON, RUSSIAN FOREIGN MINISTRY (through translator): This is nothing more than a collection of unsubstantiated inferences and farfetched assumptions that Britain and France are trying to build into a structure. And every time, it all collapses in front of everyone.
PLEITGEN (voice-over): But, on Russian TV, this military expert, and defense military adviser, seemed to admit the origin of the drones. Not realizing his mic was hot, he tells the host --
RUSLAN PUKHOV, RUSSIAN MILITARY ANALYST (through translator): Let's not shake the boat too much. We all know that they are Iranian. But the authorities do not admit that.
PLEITGEN (voice-over): But the Russians are now admitting things are not going well on the battlefield. The top commander acknowledging his force's position in Ukraine's South is, quote, "tense."
Fred Pleitgen, CNN, Kramatorsk, Ukraine.
(END VIDEOTAPE)
VAUSE: Still no agreement among European leaders on how to tackle a looming energy crisis as they prepare to wrap up a two-day summit in Brussels.
Without a last-minute breakthrough, the summit will end Friday without a plan.
The president of the European Parliament warned time is short.
(BEGIN VIDEO CLIP)
ROBERTA METSOLA, EUROPEAN PARLIAMENT PRESIDENT: The time for small steps is over. What we need now is giant leaps in order to replace those small steps. We can get our bills under control. We can cushion the social and economic impact of the crisis. We can bring down sky- high energy prices, but we can only manage it if we do it together.
(END VIDEO CLIP)
VAUSE: The biggest sticking point is a price cap on importing national gas this winter. France, Italy, and others want a price cap to fight rampant inflation at home.
But to much disappointment, Germany and others have been a hard no. Here's the German chancellor.
(BEGIN VIDEO CLIP)
OLAF SCHOLZ, GERMAN CHANCELLOR (through translator): A politically-set price cap always creates the risk that producers will sell their gas elsewhere. And that we Europeans will end up with less gas instead of more.
That is why the E.U. must coordinate closely with other gas consumers such as Japan and Korea so that we do not end up competing with each other.
(END VIDEO CLIP)
VAUSE: A number of immune-invading new COVID variants have global health officials worried about a possible winter surge.
Several variants have appeared in the United States, as well as other countries. Infections are on the wise in the United Kingdom and Europe, where these variants have taken hold.
In Singapore the variant XBB appears to be fueling a new wave of cases. World health officials say now is the time to prepare.
(BEGIN VIDEO CLIP)
DR. MARIA VAN KERKHOVE, WORLD HEALTH ORGANIZATION: We need to be prepared for this. Countries need to be in a position to conduct surveillance, to deal with increases in cases. And, perhaps, deal with increases in hospitalizations.
We don't see a change in severity yet. And our vaccines remain effective. But we have to remain vigilant.
(END VIDEO CLIP)
VAUSE: Now, according to the U.S. Centers for Disease Control, nearly 15 million Americans have gotten the update bivalent booster, but less than 10 percent of the eligible population.
For weeks, ordinary Iranians have been risking their lives, going on to the streets to fight for civil rights. The country's regime is so oppressive, so secretive, just seeing video snuck out of Iran and hearing the first-person accounts of what's happening has been astonishing.
CNN's Jomana Karadsheh recently spoke to one woman about what she's seen and why she's risking her safety and her life to take a stand.
Some of the images in her report are disturbing, but we feel it's important to show them.
(BEGIN VIDEOTAPE)
JOMANA KARADSHEH, CNN INTERNATIONAL CORRESPONDENT (voice-over): Every day, for the past five weeks, a little bit of video trickles out of Iran, giving us a small window into the repressive republic.
A snapshot of the bravery of protesters. And the ruthlessness of regime forces.
The government's Internet restrictions have made it hard for us to speak to those on the front lines of this battle for change. But we got a rare opportunity to speak briefly with a 28-year-old protester. We're not identifying her for her safety.
UNIDENTIFIED FEMALE: When I went to the protest location, I was really scared, and I -- and I was like, what am I doing here? Here's a war zone. And I was so scared. I realized that if I want to make a change, I should start with myself.
KARADSHEH (voice-over): That defiance was met with sheer brutality. Women have been beaten up with batons and shot at. This protester's body riddled with shotgun pellets, according to rights group Hengaw. Many have been dragged by their uncovered hair.
And according to human rights groups and Amnesty International, some sexually assaulted in plain sight by the very forces claiming to be the enforcers of morality.
UNIDENTIFIED FEMALE: Individuals and Basij (ph) forces attack people and beat them and to scare people. I saw a lady who was coming back from clarence (ph) and the Basij (ph) forces hit her. They beat her in her sensitive place. And she couldn't work.
[00:25:05]
KARADSHEH (voice-over): She recounts, in terrifying detail, what she and others have witnessed firsthand. Security forces, roaming the street on motorbikes, attacking people. Opening fire on peaceful protesters, and chasing them into buildings.
UNIDENTIFIED FEMALE (voice-over): Where we were attacked, we went into a store, and the sale man closed -- closed and locked the door so the forces couldn't see inside.
My heart was pounding, and I was shaking. My friend said, Do you want to go home?
I said, No, like, home. I didn't want to run away.
Nothing has happened to me, yet, and I -- I was able to escape. But it is possible, at any moment. We are now in the worst time of our life. We do everything we can. This type of distress (ph), even if it costs our lives.
KARADSHEH (voice-over): Too many lives, already lost in a battle they say for women, life, liberty.
but that's not stopping the fearless generation rising up to reclaim freedoms they've never known.
Jomana Karadsheh, CNN, Istanbul.
(END VIDEOTAPE)
VAUSE: When we come back, just 45 days in office, but now the U.K. will be dealing with the legacy of failed Truss-onomics for a long time to come.
(COMMERCIAL BREAK)
VAUSE: Welcome back, everyone. I'm John Vause. You're watching CNN NEWSROOM.
The resignation of Liz Truss has plunged the U.K. into deeper political and economic turmoil. The outgoing prime minister says she will stay at Downing Street until a successor is chosen.
(BEGIN VIDEO CLIP)
TRUSS: There will be a leadership election to be completed within the next week. This will ensure that we remain on a path to deliver our fiscal plans and maintain our country's economic stability and national security. I will remain as prime minister until a successor has been chosen. Thank you.
(END VIDEO CLIP)
VAUSE: The U-turn on Truss economic plan and the sacking of her finance minister led to a loss of confidence in her leadership. Members of her own Conservative Party saying they could no longer support her as prime minister. And, now some voters are demanding a general election.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Right now, I think that a lot of people, the public, would want a general action. And I don't think that it's very fair, since there have been I think, six, now seven prime ministers in four years? And they're all conservative. So I think it's time for a big change.
UNIDENTIFIED MALE: I think they need to look at the whole process, because this is -- I don't know how many, three or four PMs in the last three years? Or even less than that? So, something is not right. And the people of England don't deserve that.
UNIDENTIFIED FEMALE: It would be useful if we go to elections, because otherwise, something that is just the same thing.
(END VIDEO CLIP)
VAUSE: At this point, it's not so much a leadership contest to replace Truss, but more like passing a poisoned chalice.
Possible contenders include the man who resigned in disgrace, 45 days ago. Multiple allies of the former prime minister, Boris Johnson, say he could be a unity candidate. Wow.
The former chancellor of the exchequer, Rishi Sunak, could get a second life. He correctly predicted some of the challenges Truss would face, including unfunded tax cuts.
The leader of the House of Commons, Penny Mordaunt, is also in the mix. She came in third in the last leadership contest.
And Kemi Badenoch came in fourth. She's one of the younger MPs who is thought to be a favorite among pollsters.
Finally, let's not rule out Suella Braverman, the former home secretary, who resigned on Wednesday while unleashing a blistering attack on Truss's leadership. During her short six weeks in office, Truss's premiership was racked
by economic missteps, including the disastrous mini-budget, which called for sweeping tax cuts without a clear plan on how to pay for them.
The move stunned financial markets, which hit the day with the pound plummeting to an all-time low against the U.S. dollar. The stocks taking a sharp dive since -- into (ph) last month.
Truss's plan also say sent boring casts soaring, causing mayhem in the mortgage market.
Catherine Rampell is a CNN economic and political analyst and opinion right is for "The Washington Post." Good to have you with us.
CATHERINE RAMPELL, CNN ECONOMIC AND POLITICAL ANALYST: Great to join you.
VAUSE: OK, so Liz Truss came into office with a plan. Wrong plan, but a plan nonetheless. Here she is speaking shortly after winning the party leadership.
(BEGIN VIDEO CLIP)
TRUSS: I have a bold plan to grow the economy through tax cuts and reform. I will cut taxes to roared hard work and boost business-led growth and investment. I will drive reform, in my mission to get the United Kingdom working, building and growing.
(END VIDEO CLIP)
VAUSE: Why was that just the world's worst economic plan, and why?
RAMPELL: Well, the objectives, I think, were laudable: getting the economy growing. The economy in the U.K. has been sluggish for a while; took a big hit as a result of Brexit. And, then in the post- pandemic era has been struggling.
So, growing the economy is a good thing. The problem was the strategy for doing that, which was a lot of unfunded tax cuts, as well as, on top of that, essentially subsidies so that people could continue buying energy at relatively lower prices than the market would otherwise bear.
Which, again, a laudable goal. People are struggling. But -- but not so helpful if you want to discourage energy consumption, which, normally, markets will do.
The problem with all of this is, of course, in an inflationary environment when you have unfunded tax cuts, that's going to be further inflationary. You're going to, also, essentially subsidize energy consumption at a time when there's already an energy crisis. And it's cost the government a lot of money in the process, as well.
And investors, frankly, didn't believe that any of this was going to grow the economy. And, in fact, it -- it hurt the value of the pound. Markets freaked out, of course.
So it was just a mess, essentially. Again, good goals but the wrong way to go about achieving them.
VAUSE: Yes, it was such a turbulent 45 days in office for Truss. She was confronted by those rising energy costs, a cost of living crisis. As you mentioned, the pound tanked. U.K. debt was downgraded.
Her proposed tax cuts were scrapped after a lot of criticism from within and outside of the party. On Monday, while speaking to the BBC, Truss either believed or hoped that she would be in the top job for a while longer. Here she is.
(BEGIN VIDEO CLIP)
TRUSS: Now, I recognize we have made mistakes. I'm sorry for those mistakes. But I fixed the mistakes.
(END VIDEO CLIP)
VAUSE: Now she doesn't. Someone else will have to repair the damage. But how much damage has she done to the U.K. economy?
RAMPELL: Well, again, the pound has lost a lot of value. Mortgage rates are up. This is likely to weigh on the credibility of the British currency and the British government's ability to repay its debt in years in the future, for a while.
Because not only were those plans, since abandoned, not particularly productive ones. But there's -- she's a leaving a lot of chaos in her wake, as well, which probably doesn't bring a lot of confidence to investors in the governance going forward over the British economy.
VAUSE: And whoever does end up as prime minister will first have to stabilize the economy and then decide the best path forward. So, what does that path actually look like?
RAMPELL: I think it's going to be very, very challenging, because inflation, still very much a concern. Tightening financial conditions to address inflation, may very well worsen growth in the economy and, potentially, lead to a deep recession.
[00:35:18[
It looks like the U.K. economy may already be in recession, in fact.
I think the economic agenda is going to be a difficult one to get right. Probably it involves things like doubling down on the independent of the central bank, the Bank of England, so that investors believe, again, that it has credible, political independence. And it doesn't have to tighten financial conditions -- or raise interest rates quite as much as it might otherwise if people doubted its commitment.
It probably also involves a freer flow of people and goods into and out of the U.K. Again, a very touchy subject in the wake of Brexit. But, you know, the British economy needs labor. And some of that labor would probably need to come from abroad.
It's going to be a very controversial thing for anyone to broach. But those are the kinds of radical measures that -- that politicians probably need to start considering if they want to get the economy back on track.
VAUSE: Yes, it's always about the politics. Catherine, good seeing you. Thanks for being with us.
RAMPELL: Thank you.
VAUSE: What began as a joke by a British tabloid has become not only an Internet sensation, but seems almost symbolic of the crisis facing British politics right now.
CNN's Anna Stewart has more now on the lettuce versus Liz Truss.
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN INTERNATIONAL CORRESPONDENT (voice-over): "Utter Chaos," "broken." As Liz Truss's days as prime minister became numbered, one British tabloid posed a question that captured a nation. Could she last longer than this lettuce?
You may be wondering how it all began. Well, let us explain.
An "Economist" article compared the total days Truss had been in control to roughly the shelf life of a lettuce, which inspired this gem from "The Daily Star." Who would perish first?
Day or night, the campaign continued. And, despite some tough talk from Truss --
TRUSS: I am a fighter and not a quitter.
STEWART (voice-over): -- it was a resounding victory for the greens.
UNIDENTIFIED FEMALE: This is just the tip of the iceberg.
STEWART (voice-over): Officially, the lettuce cannot be tossed into the upcoming leadership race. But "romaines" the Caesar of salads.
Anna Stewart, CNN, London.
(END VIDEOTAPE)
VAUSE: Coming up here on CNN, a new legal strategy for Donald Trump. After a series of unfavorable court rulings, his lawyers have been spit balling, well, cooperation.
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VAUSE: A legal win for actor Kevin Spacey, as a New York jury finds him not liable for battery in a civil trial.
[00:40:09] Spacey was accused of touching fellow actor Anthony Rapp inappropriately in 1986 when Rapp was 14 years old. The jury deliberated for about an hour before deciding Rapp failed to prove the allegations.
Spacey still has legal trouble in the United Kingdom, including four charges of sexual assault. He has pleaded not guilty.
Former Trump national security official Kash Patel appeared for several hours before a grand jury in the Mar-a-Lago classified documents cash. Patel is a Trump loyalist to the very end who's publicly defended the former president.
This comes as Trump waits for the January 6th Committee subpoena, while considering inviting federal investigators back to Mar-a-Lago.
CNN's Sara Murray explains.
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SARA MURRAY, CNN POLITICAL CORRESPONDENT (voice-over): Weighed down by legal woes --
DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: They broke into my house.
UNIDENTIFIED MALE: Mister president!
MURRAY (voice-over): Former President Donald Trump's lawyer is now considering whether to allow federal investigators to return to Mar-a- Lago for a supervised search. Despite Trump adversarial approach towards the Justice Department --
TRUMP: It's not a crime. And they should give me immediately back everything that they've taken from me, because it's mine. It's mine.
MURRAY (voice-over): -- sources say Trump's team is considering a more accommodating approach with investigators looking into the handling of sensitive government documents stored at Mar-a-Lago.
Trump's team aiming to reduce his legal risk, as DOJ insists it still believes Trump has sensitive government documents in his possession that he must return.
Nothing though, is finalized and plenty were skeptical of the idea, with one person close to Trump telling CNN, "It's a risk to invite a DOJ lawyer to lunch, let alone back to Mar-a-Lago."
Trump also still awaiting a subpoena from the House committee investigating the January 6th attack on the Capitol.
REP. LIZ CHENEY (R-WY): We all felt that our obligation is to seek his testimony, that the American people deserve to hear directly from him, that it has to be under oath.
MURRAY (voice-over): And in another blow to the former president, a judge ruling former Trump election attorney John Eastman --
JOHN EASTMAN, FORMER ELECTION ATTORNEY FOR TRUMP: Hello, America!
MURRAY (voice-over): -- must turn over more of his emails to the January 6th Committee. The judge saying Trump likely committed a crime when he tried to upend the 2020 election.
TRUMP: We fight. We fight like hell. And if you don't fight like hell, you're not going to have a country anymore.
MURRAY (voice-over): The judge writing some of the Eastman emails "are sufficiently related to and in furtherance of a conspiracy to defraud the United States."
In one particular set of emails, the judge noting, Trump signed a court filing with numbers about alleged voter fraud in Georgia, that Trump knew were false. The emails show that "President Trump knew that the specific numbers of voter fraud were wrong but continue to tout those numbers, both in court and to the public," according to the judge.
Trump slamming the judge on social media today, saying, "He shouldn't be making statements about me until he understands the facts. Which, he doesn't."
MURRAY: And we're still waiting, of course, on the January 6th Committee to actually issue their subpoena to former President Trump, but we are learning that he's tapped two lawyers, Harmeet Dhillon and Jim Trusty, to be the point people for when that subpoena actually arrives.
Of course, the former president has been very critical of the committee's work. But, this is an indication that he knows he needs attorneys to actually engage with the committee, engage in some negotiations and respond in some way to this subpoena.
Sara Murray, CNN, Washington.
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VAUSE: Thank you for joining us. I'm John Vause. Please stay after the break. WORLD SPORT is up next. Have a great weekend.
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